The Insurance Act 2015 (the "Act") comes into force tomorrow. It represents a fundamental departure from existing insurance law. The changes impact on a number of key areas which are...11 August 2016
Delay in the development of regulatory technical standards of KIDs for PRIIPs
The Joint Committee of the European Supervisory Authorities (ESAs) -EBA, EIOPA and ESMA- were mandated by the PRIIPs Regulation to develop draft Regulatory Technical Standards (RTS) on the content and presentation of the KIDs for PRIIPs. A prescribed format and content for the KID (Key Information Document).
The new regulation concerning PRIIPs was supposed to enter into force in 2017, but the complexity of its elaboration and the different points of view of the European Regulators have provoked the inevitable delay of the final wording.
This new regulation will have an special impact over Unit linked insurance products, which will most likely have a further more demanding way of commercialization, particularly with much more detailed information obligations, making special emphasis in the need to assist retail investors in analyzing different types of PRIIPs products and understanding the risk to assume.
The current discussion of the ESAs which has provoked the aforementioned delay is focused in finding simple formulas of the KID for the consumers to be duly informed and avoid misunderstandings in the PRIIPs sales processes which may lead to undesirable damages of the retail investors.
EBA, EIOPA and ESMA have given themselves a deadline until the end of the first half of next year so as to determine the final wording of the new regulation.
The Hogan Lovells’ Corporate Insurance Newsletter for July has been published. This provides a round-up of UK, EU and international regulatory developments relevant to UK based...04 August 2016
Introduction03 August 2016